The Law on Amendments to the Law on Tax Procedure and Tax Administration was published in the Official Gazette of the of the Republic of Serbia no. 144/2020 of 27.11.2020. The law entered into force on December 5, 2020, and the most important changes thereto are highlighted below.
Introduction of open and alternative investment funds as a taxpayer
A provision is introduced which characterizes open or alternative investment funds as taxpayers, who have rights and obligations in the fiscal procedure, whereby it is defined that the fund management company, as a legal entity is responsible for tax, property and legal liabilities. In exercising this liability, the fund management company performs activities related to the fund’s tax liabilities: filing an application for registration, filing tax returns, keeping business books and records for taxation purposes, paying the fund’s tax liabilities, etc.
Submitting a request in electronic or written form
From January 1, 2021, a request for refund of overpaid or incorrectly paid tax (i.e. secondary taxes), as well as for tax refund, i.e. for the settlement of due liabilities based on other legal grounds by means of tax rebooking, will be submitted in electronic form through the Tax Administration portal, or in writing – directly or by regular post services.
Tax identification number
It is specified that the Tax Administration also assigns TIN in case of due and unsettled obligations on the basis of public revenues, which arose in connection with the performance of activities of economic entities deleted from the prescribed registers in the bankruptcy procedure.
Taxpayer registration
For the purpose of TIN issuance, the term resident entrepreneur is defined in more detail, so that it now also includes the category of entrepreneurs, as defined by the Law on Personal Income Tax.
A provision has been introduced which specifies that the fund, through the management company, submits an application for registration to the headquarters of the Tax Administration within five days from the day of being entered into the prescribed register.
It has been determined that SBRA (Serbian business register Agency) cannot register the acquisition of shares or stocks in economic entities, nor the establishment of new economic entities, in the case when the relevant legal entity or entrepreneur that is registered as a founder is subject to tax audit in order to detect tax crimes or from whom TIN has been temporarily revoked.
Rules for electronic submission of fiscal acts to individuals
The act of the tax administration can be submitted in electronic form without the consent of the individual, if the individual submits tax returns through the portal of the tax administration. In the event that an individual submits tax returns in paper form, it is necessary to obtain his/her consent to have tax acts submitted to him/her through the portal of the tax administration.
The consent of an individual is not necessary for the submission of tax acts issued by a local self-government unit, if the individual is registered with the system of a single electronic mailbox.
Tax deferral
The Law introduces the obligation to submit requests in electronic form through the portal of the tax administration.
In addition, the entitlement to defer the payment of taxes can also be exercised by taxpayers in the event of consequences caused by a pandemic, force majeure, or other extraordinary event.
In the following period, the Government will pass an act regulating the deferral of the payment of the tax due, i,e. of stil immature fiscal obligations.
The relevant amendment allows taxpayers to defer fiscal payments in order to mitigate the economic consequences caused by the COVID-19 virus pandemic, as well as those of other future, uncertain events that may affect the economic position of economic entities.
This provision will be applied retroactively, from January 1, 2020.
Measures during tax audit
The rule has been prescribed that the good from the warehouse, as well as the goods placed in the premises, about which the tax administration had not been informed, will be confiscated during the tax audit.
A new criminal offence
A new criminal offence has been prescribed – tax fraud in connection with value added tax:
- A person who realizes the entitlement to an unjustified tax credit or VAT refund in the previous 12 months by submitting a tax return or returns with false content, should the amount of the refund or tax credit exceed the amount of RSD 1,000,000, will be sentenced to an imprisonment for a term of 1 to 5 years and a fine;
- For a person who, in the intention to avoid paying taxes, fails to file one or more tax returns, files a tax return with untrue content or otherwise avoids paying taxes, should the amount of the tax evasion exceed RSD 1,000,000, shall be sentenced to an imprisonment. For a term of 1 to 5 years and a fine.
If the amount of VAT exceeds RSD 5,000,000, the perpetrator will be sentenced to an imprisonment for a term of 2 to 8 years and a fine. If the amount of VAT exceeds RSD 15,000,000, the perpetrator will be sentenced to an imprisonment for a term of 3 to 10 years and a fine. In addition, a security measure prohibiting the performance of vocation, activities and duties for a term of 1 to 5 years shall be imposed on an individual, entrepreneur and responsible person in a legal entity.
